Why Local Independent Companies Are Good For Everybody.
Types of bus companies
Bus companies come in three main forms, ranging from huge commercial companies, small independent commercial companies and community transport companies.
Large nation-wide commercial companies such as First, Stagecoach and Arriva serve areas throughout the country, they run thousands of routes and employ thousands of drivers, they are usually owned by share holders, shareholders mainly consist of individuals who have worked for the company, or still do; but this doesn't mean they own the majority, far from it, most of these big companies have one majority stakeholder who maintains control of the business, this means there is really only one person or one family who benefit from the success of a company. In big companies especially First, the shareholders who work for the company have shares due to a in house scheme, and are not buying them in hope to get a decent dividend, but to boost their pension within the company.
Small independent companies such as JPT, Stotts, Jim Stones, South Lancs Travel and Cumfybus generally only serve the immediate areas surrounding their depot. This is because they are owned by a local business man. They are owned by individuals who wanted to be their own boss. This means that the success of the company benefits the owner and their family. Unlike big companies shares in such companies usually aren't available for purchase. They have all their staff based in one place, employing local people, and providing services for local people.
Community transport companies such as Rochdale Community Transport, Bolton Community Transport and Manchester Community Transport; are like independent companies, as they are independent but all post-expenses and post-tax profits go back into the company to improve the service they provide, community transport companies do not run commercial routes as a rule of thumb, (I know the 3 mentioned don't, this may be different in other areas of the country) they run tendered routes, tendered routes exist because it wouldn't make commercial sense to run the service as the customer base wouldn't pay the expenses (e.g. driver's wages, bus purchasing, fuel etc...) so in order for a service to exist in certain areas local authorities pay companies to run the routes. Community transport companies also provide other transport services apart from bus services such as Local Link - Local Link is a service for people who can not use general public transport to complete their journey, or people who have difficulty using such transport; it works like a taxi service basically, but is hugely subsidised.
How local bus companies are beneficial
Economy
Local independent companies are good for the local economy. This is quite simple to explain really, a local person owns a company, employs local people, and local people use the services. This basically translates to mean that money is coming into the company from people who work for (inter)national companies spend their money on a local bus, this money then goes to the company, who pays the wages of local people, and gives profits to the owner. All these local people are now getting money from (inter)national companies, and then they spend the money in the local area, in shops and local attractions etc... Meaning that money from around the world is being moved into local areas, meaning people in the area have more money floating around the community so people have a better standard of living.
(Inter)National companies on the other hand get their money from local people who potentially earn the money from local businesses or even other (inter)national companies and then give it to a large company, en-which the profits go to one main person, and as we all know the rich like to stay rich and never spend anywhere near as much as they earn, meaning more money is tied up in banks, allowing banks to trade with the money, keeping the rich rich and the poorer in their current perdiciment, so this only ends up benefiting the already wealthy.
Competition
Large companies end up having a small monopoly within a city environment, for instance in Manchester, if you want to get anywhere in South Manchester, you would struggle to avoid a Stagecoach bus and when you do you will no doubt be bording an Arriva or Finglands bus, both of which are also huge national companies which don't benefit the local area. Due to this monopoly they can charge what they like and you don't have much choice in which company to spend your money with.
For example a Stagecoach daysaver is £3.90, a First daysaver is £4.50, and they can charge these fares as nobody is competing with them on price so they can charge what they like. When JPT were competing with First on the 17 route, they got into a price war, and it ended up being great for bus users as fares were decreased considerably, now if every area of Manchester, or even the country had multiple bus companies operating in it, then prices would be cheaper than they currently are, as both companies are fighting for your business. If Manchester became a city where only Stagecoach existed (which could end up happening in years to come) then who would be their competition? Nobody. Meaning stagecoach could charge what they wanted and you wouldn't have much other choice except from maybe a car, either way the cost of your commute to work would be increased, and would your wages? I think not. So you would end up worse off.
I hope you enjoyed my read, and in future consider using independent companies, even if you buy a System One pass or similar and use small firms, they will reek the benefits of you doing this, as in System One's case, the bus operator gets a certain amount (money) for every passenger that uses one of these passes, this may only be something like 5p, but everything ads up. Think of the lively hood of the people working for these companies too.
At the end of the day humans are selfish - we all are, being selfish can benefit others too though, wanting a local company to succeed will create competition, meaning lower fares, meaning you spend less, meaning you're better off, be selfish - use local companies.
At the end of the day humans are selfish - we all are, being selfish can benefit others too though, wanting a local company to succeed will create competition, meaning lower fares, meaning you spend less, meaning you're better off, be selfish - use local companies.
Thank You for reading.
